3) Which of the following correctly describes the accounting for administrative expenses of a manufacturing company? a. Administrative expenses are product costs and are expensed as incurred. b. Administrative expenses are period costs and are expensed as incurred.

1) Which of the following will be included in manufacturing overhead costs?
a. Indirect labor and indirect materials
b. Salaries of salesmen
c. Direct materials and direct labor
d. Delivery costs to ship goods to customers

2) Product costs are expensed:
a. when the products are consumed or sold.
b. at the end of the accounting period they are incurred in.
c. when the products are transferred to Work-in-Process Inventory account.
d. when the market value of products goes above the recorded value.

3) Which of the following correctly describes the accounting for administrative expenses of a manufacturing company?
a. Administrative expenses are product costs and are expensed as incurred.
b. Administrative expenses are period costs and are expensed as incurred.
c. Administrative expenses are product costs and are expensed when the manufactured product is sold.
d. Administrative expenses are period costs and are expensed when the manufactured product is sold.

4) Alexandra’s Designs, a fashion boutique, incurred the following in the month of September:

What is the total factory overhead?
2) At the beginning of 2015, Swift Company’s Work-in-Process Inventory account had a balance of $120,000. During 2015, $250,000 of direct materials were used in production, and $75,000 of direct labor costs were incurred. Manufacturing overhead amounted to $850,000. The cost of goods manufactured was $675,000. What is the balance in the Work-in-Process Inventory account on December 31, 2015?
3) Ace Travel Services provided the following information:

Calculate the total product cost using absorption costing and variable costing.

6) LDR Manufacturing produces a pesticide chemical and uses process costing. There are three processing departments—Mixing, Refining, and Packaging. On January 1, 2014, the first department, Mixing, had no beginning inventory. During January, 40,000 fl. oz. of chemicals were started in production. Of these, 32,000 fl. oz. were completed and 8,000 fl. oz. remained in process. In the Mixing Department, all direct materials are added at the beginning of the production process and conversion costs are applied evenly through the process.

At the end of the month, LDR calculated equivalent units. The ending inventory in the Mixing Department was 60% complete with respect to conversion costs. With respect to conversion costs, how many equivalent units were calculated for the product that was completed and for ending inventory?
7) Margaret sells hand-knit scarves at a flea market. Each scarf sells for $25. Margaret pays $30 to rent a vending space for one day. The variable costs are $15 per scarf. How many scarves should she sell each day in order to break even?